Building Your Credit History

Today, credit is an indispensable part of our lives. In order to get the things you need, such as a home or a car, you have to apply for a credit. But you cannot get a credit without having a credit history, and you cannot get a good quality credit without having a good credit history. So, it is important to start building your credit history when you're young.

When applying for a credit, if you don't have a credit history, it is possible your credit application to be denied. This means you definitely need to start building a credit history. There are different ways to start a credit history. If you're a student, you can get a student card from the companies that offer such special cards. On this credit card you can charge your necessities and at the same time build your own credit history.

When you're a young adult and you have always used checks or paid cash for your purchases you'll soon realize that you cannot apply for a credit as you don't have a credit history. A secured credit card can really help you. These secured credit cards are considered a first step for those with no credit history. For obtaining a secured credit card a deposit is required and the spending limit is equal to the amount of the deposit. To make sure you're building a good credit history with this first credit card, be careful not to go over the limit and pay your bills on time. After some time, depending on each company, you can apply for an unsecured credit card but only if you have a good credit history.

There are also other more simple ways of starting a credit history. One easy solution is to open a savings or checking account that will definitely show how you are able to manage your money. Or if you have a cellular phone or a pager and pay your bills on time every month, you can demonstrate that you're capable to control your money wisely. Another way is to consider applying for a card offered by gasoline companies or retail stores. This type of card has a low credit limit and can be paid off each month.

All above methods are just first steps in building a credit history. The next steps are also important because they will greatly influence the history you have started building. Every time you pay or not pay a bill on time your credit history registers it. Having a good credit history shows that you are a person that treats debts responsibly and you're likely to pay back the money that you want to borrow. To gain the confidence of the credit companies they have to see on your credit history that you treat with responsibility every bill. So make sure to pay the total minimum due on every one of your bills and do an effort to pay them by the statement due date so that they arrive on time. Also do you best to pay at least the minimum, if not the entire, balance each month. Try to never skip payments; it doesn't look good on your credit history.

If you ever feel that your debts are getting out of control, immediately seek help from a financial counselor. He will be able to evaluate the entire situation better than you can and he can find the best solution that will get you out of that massy situation. A financial counselor will also advise you to annually check your credit report for any errors that may appear. Then, if any errors are present, correct them immediately.

It is not difficult to start building a credit history; it just takes time and a lot of patience from your side. Yet, we have to admit that the difficult part is to build a good credit history for which you must be able to demonstrate that you can wisely manage your money. Keep in mind that a good credit history will only bring you benefits.

This article has been provided courtesy of CreditorWeb. CreditorWeb offers great credit card articles available for reprint and other tools to help you find the right credit card. You can also use our credit card comparison tool to easily compare credit card offers from multiple issuers.

---

Debt Collection Agencies

Debt collection agencies are often a viable option for receiving... Read More

How To Save Money On Credit Cards

Some credit cards offer a cash advance option. But how... Read More

How To Get a Low Interest Credit Card

Consumers often have the first credit card that they ever... Read More

What Happens When Your Credit Is Damaged? Do You Have Recourse?

The good thing about bad credit is that you can... Read More

Understanding Credit Report Score

Understanding credit report scores is important when you see your... Read More

Annual Credit Report and Free Annual Credit Report

Getting an annual credit report review has been the advice... Read More

Consumer Credit Reports

A consumer credit report is a factual record of an... Read More

Credit Report Secrets: Do You Know What They Reveal?

If you've ever applied for a credit card or loan,... Read More

Free Credit Report ? Watch Out for Scams

Many people may still not be aware of an amendment... Read More

What To Look For In A Credit Card

When you are deciding what type of credit card to... Read More

Credit Suicide

Few things influence the home buying process more than your... Read More

How To Get Out Of Credit Card Debt

If you're like the average person, let me warn you... Read More

Legislators Ponder New Credit Protection Laws

Legislators in Washington, D.C. are considering several credit-related consumer protections... Read More

Your Consumer Rights

If you have ever fallen behind on your debts you... Read More

How to Improve Your Credit Rating

So you got into debt, had problems but you got... Read More

Low Interest Credit Cards Have Many Advantages

When credit cards are used wisely they can be very... Read More

10 Ways of Reducing the Risk of Identity Theft

1- Check your credit report regularly2- Secure personal information in... Read More

Credit Card Traps: How To Spot Them On The Spot!

They arrive in your mail - a conspicuous looking mail... Read More

Credit Cards, Merchant Accounts, and Your Bottomline

Q: I'm opening a gift shop and want to be... Read More

The Hazards Of Your First Credit Card

You probably don't need me to tell you credit cards... Read More

Bad Credit? No Credit? Yeah, Its a Problem.

Many companies use the slogan "Bad Credit? No Credit? No... Read More

Credit Card Rates - Negotiating Rates with Your Credit Card Company

Ok, let's face it, everybody hates high credit card rates,... Read More

Credit Card Dirty Tricks

There are many of us that have been badly stung... Read More

Credit Cards - Why Prepay?

With prepaid credit cards, you get the practicality of plastic... Read More

It Takes Credit To Build Credit

Using a credit card wisely is an important step in... Read More

Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK?

About Search Entries:Every time a lender checks your credit history... Read More

Why Your Credit Score is Important

Your credit score can either haunt you or reward you.... Read More

7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit

There are seven consumer credit laws you should be aware... Read More

Free Credit Reports Now Available From the FTC

The Federal Trade Commission (FTC) has set up a new... Read More

Bad Checks, Bounced Checks, & NSF Checks

Negotiable instruments like checks and drafts have become an indispensable... Read More

Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards

Secured Credit Card is similar to a prepaid credit card... Read More

Credit Report ? How Your Credit Score is Determined

Most consumers are aware that they have something known as... Read More

Repair Your Credit - The Right Way!

How to Repair a Bad Credit Rating?The Right Way!If you... Read More